Marketing in a Lean Startup

The Five Minute Lean Startup An Introduction Bernhard Kappe Founder/CEO Pathfinder Development

Name the CompanyNew Product: Online Ordering and Same DayDelivery of GroceriesApproach:- Great Idea (Patented!)- Killer Business Plan and Presentation- Raise $800 million in capital- Build vast automated warehouses- Purchased fleets of delivery trucks- Build state of the art, easy-to-use website- Hire a seasoned CEO from the consulting industry- Hire the best marketing and sales money can buy.- Make a big product launch splash

Name the Company

9 Out of 10Startups/New Products Fail

No business plansurvivesthe ﬁrstcustomercontact

The Path to Disaster• Building on Invalid Assumptions• Premature Scaling• Lack of Customers and Markets• Change Your Business Model at Scale

Burning Money

The Path to DisasterRun Out of Money and Time Beforeyou Discover a Business Modelthat Works

Your Job as an Entrepreneur: Discover a Business Model that works before you run out of Money and Time. (Then scale it.)

Enter the Lean Startup

The Lean StartupDiscover It’s about learning! Set up a validated learning loop, optimized for learning, not

The Lean StartupDiscover a Document yourBusiness Model business model assumptions - this is what you’re validating.

The Lean StartupDiscover a Get OutBusiness Model of the BuildingThat Works and Talk to Real Live Customers. (That’s where the facts are.)

The Lean StartupDiscover a Lean: ReduceBusiness Model Waste, don’t doThat Works unnecessaryBefore You Run work.Out of Time andMoney. Pivot: Change and test again when you’ve

Business Model Customer Generation Development +• Explore Business Models • A Process for Validating• Document Business Model Assumptions Assumptions

Customer Development

Customer Development Search Execution

http://momentum-mi.com/lean-conference/

Jobs? (not Steve)

Survey Results

Marketingin the Lean Startup Bernhard Kappe Todd Wyder CEO, Pathﬁnder CEO, BrokerSavant

Value Stream Leads CustomerMarketing Sales Retention Product Management Product Development Financial Management Human Resources

Phases• Customer Discovery (Pre-launch)• Customer Validation (launch)• Customer Validation (post-launch)

Business Model Hypotheses Problem Solution Unique Value Unfair Customer Proposition Advantage Segments Top 3 Problems Top 3 features that address the problem Single, clear, Can’t be easily Target Customers compelling message copied or bought why you are different and worth buying Key Activities Channel Activity that drives Path to customers acquisition/revenue for marketing and sales Cost Structure Revenue Model• Customer acquisition costs • Revenue Model• Distribution costs • Lifetime Value• Hosting • Revenue• People, etc. • Gross Margin

Problem Interviews Problem Solution Unique Value Unfair Customer Proposition Advantage Segments Top 3 Problems Top 3 features that address the problem Single, clear, Can’t be easily Target Customers compelling message copied or bought why you are different and worth buying Key Activities Channel Activity that drives Path to customers acquisition/revenue for marketing and sales Cost Structure Revenue Model• Customer acquisition costs • Revenue Model• Distribution costs • Lifetime Value• Hosting • Revenue• People, etc. • Gross Margin

Solution Interviews Problem Solution Unique Value Unfair Customer Proposition Advantage Segments Top 3 Problems Top 3 features that address the problem Single, clear, Can’t be easily Target Customers compelling message copied or bought why you are different and worth buying Key Activities Channel Activity that drives Path to customers acquisition/revenue for marketing and sales Cost Structure Revenue Model• Customer acquisition costs • Revenue Model• Distribution costs • Lifetime Value• Hosting • Revenue• People, etc. • Gross Margin

Business Model Hypotheses Problem Solution Unique Value Unfair Customer Proposition Advantage Segments Top 3 Problems Top 3 features that address the problem Single, clear, Can’t be easily Target Customers compelling message copied or bought why you are different and worth buying Key Activities Channel Activity that drives Path to customers acquisition/revenue for marketing and sales Cost Structure Revenue Model• Customer acquisition costs • Revenue Model• Distribution costs • Lifetime Value• Hosting • Revenue• People, etc. • Gross Margin

Customer Discovery• Find folks to interview• Create a teaser site• Build your channel right from the start• Build a landing page

Collect Email Addresses

Customer ValidationGoals:• Product/Market Fit (CAC <= LTV/3)• Scalable, Repeatable Sales Model

Lead/Sales GenerationChannel Landing Page Conversion • Direct Conversion (Self Service) • Lead for Drip Marketing • Lead for Inside Sales (Phone, Chat, Web Demo) • Lead for Field Sales Force

Each Step Costs MoneyChannel $ Landing Page $ Conversion • Direct Conversion (Automatic) • Lead for Drip Marketing • Lead for Inside Sales (Phone, Chat) • Lead for Field Sales Force

Landing Pages

A/B Testing• Do big tests ﬁrst: design, messaging• Then test Headline, Call to Action, Hero, Forms, Body,Video, Long/Short Copy, etc.• Ads and Landing Pages - match• Test Ads

A/B Testing

Marketing Channels Push/Interrupt Pull• Telemarketing • SEO• Email marketing • PPC• Direct Marketing • Blogging• Trade shows • Twitter• Banner ads • Facebook fan page• Facebook ads • Content marketing

Push - Not Recommended• Print• Direct mail• Radio/TV• Telemarketing

Push - Maybe/Yes• Trade shows• Hospitality room• Newsletters• Drip marketing

Email Marketing• Mail provider• email metrics• autoresponding• nurture/drip marketing

Email Marketing

Pull Marketing• Twitter• Blogging• Facebook• PPC• SEO• LinkedIn

SEO• Keywords • Landing pages• Backlinks • Commenting on other blogs• Ads• Twitter

Blogging

Blogging Tips• Consistency - have a schedule• Comment on other blogs, guest blog• Test different post types• Distribute: Feeburner, Twitter, Facebook• Post: Digg, Reddit, Delicious, etc.• SEO: Keywords, categories, titles and links

Match Channel to AudienceFarmers Farm Advertisers

Twitter• Follow people who share the same interest as your customers (many will follow you back)• Tweet, retweet and comment about subjects that are interesting to them• Timing, measurement, hashtags and lists

Facebook• Fan page• Ads

After Clicking Like

Thought Leadership• LinkedIn• Quora• eBooks• Webinars• Infographic• BuiltInChicago

PPC• Google, Bing• LinkedIn, Facebook• Fastest Way to Trafﬁc/Leads• But ...Costly, Complicated and Time Consuming• Remember the Goal: CAC <= LTV/3

Create a Funnel New Site Visitor 100% 2+ Visits/TOS > 2 min 50% Viewed Pricing 10% Conversion 2%

Measure Channels• Tweets • Fan Page Visits • Impressions• Retweets • Likes • Click Throughs• New Followers • Click Throughs • CPC• Click Throughs New Site Visitor

Marketing Dashboard• Funnel + Channels• Review it weekly• Customer Acquisition Cost for each channel• Velocity• Throughput

Summary• Marketing is the lifeblood of your company• Goal: Get CAC <= LTV/3• Lots of testing - so it takes time to get marketing right• Marketing ﬂows out of customer discovery• It’s never too early to start marketing

http://www.leanbuildingblocks.com/ Lean Building Blocks• June 10th• In Depth Course on Marketing for Lean Startups

Marketing in a Lean Startup

by Pathfinder Software on Apr 25, 2011

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Marketing in a Lean Startup — Presentation Transcript

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